November 2010

Changes in National Cost Estimates 

Associated with the Final Rulemaking: 

Revision of Certain Provisions of the 

Mandatory Reporting of Greenhouse 

Gases Rule 

Final Report 
Background 

On October 30, 2009, EPA promulgated the final rule titled: Mandatory Reporting of 

Greenhouse Gases (74 FR 56259), under the authority of Sections 114 and 208 of the Clean Air 

Act. The final rule (Part 98) requires reporting of greenhouse gas (GHG) emissions and other 

relevant information from certain sources in the economy. Data collection begins in the 2010 

calendar year with the first reports submitted by March 31, 2011, and annually thereafter by that 

deadline. 

Following publication of the rule, EPA has been working closely with owners and operators of 

facilities subject to the rule to communicate reporting requirements. Through these discussions, 

EPA has identified specific sections of the final rule that were either not clear, or did not have 

the intended effect. EPA is amending specific provisions in the greenhouse gas reporting rule to 

resolve issues and questions raised during implementation, and to correct technical and editorial 

errors that have been identified since publication. This memorandum documents changes in the 

national cost estimates associated with this final rule. 

Additional First-Year Cost Associated with the Review of 

Revisions Provisions 

During the first year of the Greenhouse Gas Reporting Program (GHGRP), EPA anticipates all 

reporting facilities would need to review the amended provisions associated with this final rule. 

To estimate these costs, EPA assumes an additional 3 hour burden for an industrial manager 

using the loaded labor rate for an industrial manager ($71.03)1. Multiplying the cost per facility 

(3 × $71.03 = $213.09) by the estimated affected population, the total additional first year costs 

are estimated to be $2.4 million (2006$). 

 

1 A complete description of the labor categories and labor cost methodology is described in Regulatory Impact Analysis for the 

Mandatory Reporting of Greenhouse Gas Emissions Final Rule (GHG Reporting) (EPA, 2009, p. 4-2 and 4-3). Available at: 

http://www.epa.gov/climatechange/emissions/downloads09/GHG_RIA.pdf
Table 1. Additional 1st Year Changes Associated with Review of Revisions Provisions 

(million, 2006$) 

 Number of Facilities 

Final GHG Reporting Rule 10,152 

F-Gas: Subparts I, L,DD, QQ, SS 417 

Subparts RR and UU: 93 

Subparts: T, FF, TT, and II: 683 

Total Population Affected: 11,345 

Cost per facility (3 hours × $71.03) $213.09 

Total 1st Year Costs: $2.4 million 

Subpart C: Tier 4 Requirements for Units that Combust 

Greater than 250 Tons of Municipal Solid Waste (MSW) per 

Day 

Tier 4 Requirements for >250 Ton MSW Combustion 

In Part 98, EPA finalized a threshold of 250 tons per day of MSW, along with the requisite 

monitors to determine who had to follow Tier 4, versus who could use Tier 2. Units greater than 

250 tons of MSW per day, that have a gas monitor of any kind, or a flow monitor, or both, and 

meet the other requirements in 98.33(b)(4)(ii) were required to use Tier 4. Units equal to or less 

than 250 tons of MSW per day, that have a flow monitor and a CO2 concentration monitor, and 

meet the other conditions in 98.33(b)(4)(iii) also had to use Tier 4. The 250 tons per day 

threshold was based on New Source Performance Standards (NSPS). Upon further 

consideration, EPA determined that although the threshold may be appropriate for NSPS that 

does not necessarily mean it is appropriate for a GHG reporting program. Based on these 

concerns, EPA is amending Part 98 to change the 250 tons per day threshold to 600 tons per day, 

based on EPA analysis that this value is approximately equivalent to the 250 mmBtu/hr heat 

input requirements for other large stationary combustion units (please see the Background 

Technical Support Document for Revisions EPA-HQ-OAR-2008-0508). Units that do not meet 

the 600 tons per day trigger, and do not have the requisite monitors, could use Tier 2. EPA 

believes that this requirement still meets the desired goal to obtain high quality data from larger 

units, while not applying unnecessary burden. With this amendment, general stationary 

combustion units will be subject to similar thresholds and conditions. 

Under the new threshold, EPA believes 87 general unspecified industrial combustion units will 

move from Tier 4 (CEMS-Add flow monitor only; $25,411 per unit first year and $18,090 per 
unit in subsequent years) to Tier 2 costs ($5,500 per unit)—a net reduction of $19,111 per unit 

and $12,590, respectively. This implies the following reductions in the national cost estimates: 

First Year: 87 × $19,111 = $1.7 million. 

Subsequent Years: 87 × $12,590 = $1.1 million. 

Subpart C and Subpart D: Mandatory Biogenic CO2 Emissions 

Reporting Requirements 

Under the proposed rule, EPA was trying to reflect in regulatory language clarifications that have 

been issued stating that separate reporting of biogenic emissions for units subject to 40 CFR part 

75 was optional. To clarify this optional reporting, EPA proposed to amend the data elements in 

subpart A (specifically §98.3(c)(4) and subpart C. All units, except Part 75 units, would still 

have been required to calculate and report biogenic CO2 emissions separately. 

EPA received numerous adverse comments on the proposed amendments that would re-structure 

§98.3(c)(4) and make separate reporting of biogenic CO2 emissions optional for Part 75 units. 

Most commenters urged EPA to make separate reporting of biogenic emissions mandatory for all 

reporters. Based on the comments received, EPA decided to withdraw the proposed restructuring of §98.3(c)(4). EPA also reconsidered their position on optional biogenic CO2

emissions reporting for Part 75 units. In the final rule, a new paragraph, (c)(12), has been added 

to §98.3(c), which states that this reporting is optional only for the first year of the program (i.e., 

for the 2010 reporting year). Thereafter, all Part 75 units must separately report their biogenic 

CO2 emissions. EPA is allowing the optional biogenic CO2 emissions reporting for the 2010 

reporting year in light of previous statements and guidance on the issue. It is likely that at least 

some Part 75 sources are following that policy guidance and have elected not to separately report 

biogenic CO2 emissions. It is equally likely that these sources have not been keeping the 

necessary records or performing the required emission testing to enable them to report these 

emissions for 2010. 

EPA estimates that this additional mandatory reporting requirement will apply to 53 combustion 

units under Subpart C. Since emissions reporting in 2010 will remain optional, these units will 

incur no additional first-year costs. The subsequent year costs will increase annually by $2,200 

per unit and will affect the national Subpart C costs as follows: 

First Year: $0 

Subsequent Years: 53 × $2,200= $116,600 
This additional cost changes the net Subpart C reductions from $1.1 to $1.0 million as reflected 

in Table 2. 

Subpart NN: Local natural gas distribution companies 

(LDCs) 

EPA is amending Part 98 to require all LDCs that deliver 460,000 thousand standard cubic feet 

(mscf) or more of natural gas per year to be required to report. EPA selected this capacity-based 

threshold because a capacity-based threshold would be more familiar to LDCs. Owners and 

operators of LDCs know how much natural gas they deliver to their customers and it would, 

therefore, be easier for facilities to determine if they are subject to the rule, than if the threshold 

were emissions-based. The threshold is approximately equivalent to 25,000 mtCO2e. 

Under the new reporting threshold, the number of covered LDCs falls by 848 facilities (1,207 to 

359.) EPA anticipates many of these facilities are potentially small entities; as a result, the new 

threshold will likely reduce the number of small entities covered under Part 98. In the 

Regulatory Impact Analysis for the Mandatory Reporting of Greenhouse Gas Emissions Final 

Rule2, the estimated reporting cost per facility was approximately: 

First Year: ($2,600 +1,700) = $4,300 

Subsequent Years: ($1,300 + 1,700) = $3,000 

This implies the following reductions in the national cost estimates: 

First Year: 848 × 4,300 = $3.6 million and 

Subsequent Years: 848 × 3,000 = $2.5 million. 

Summary National Cost Changes Associated with the Notice of 

Revisions 

As shown in Table 2, the National Cost estimates decline from $132.0 million to $129.2 million 

(two percent) in the first year and from $89.1 million to $85.6 million (4 percent) in subsequent 

years. 

 

2 Available at: http://www.epa.gov/climatechange/emissions/ghgrulemaking.html. 
Table 2. Summary of Cost Changes Associated with the Notice of Revision (million, 2006$) 

Variable First Year Subsequent Years 

Mandatory Reporting Rule 

National Cost Estimate 

(Private and Public) $132.0 $89.1 

Review of Revision 

Provisions $2.5 $0 

Subpart NN Change —$3.6 —$2.5 

Subpart C Change —$1.7 —$1.0 

Revised National Cost 

Estimate $129.2 $85.6

Other Amendments in Notice of Revisions 

EPA is making several other amendments to various provisions in Part 98. EPA has estimated 

that on the whole, these revisions do not significantly change the overall costs of Part 98. The 

other amendments could be categorized as follows: 

• Rule provides additional flexibility for reporters based on questions raised during 

implementation. 

• Clarifies existing data reporting requirements. 

• Facilities will be required to report basic facility ID information that they already know. 

• Reporters will be required to report a data element for which there was a general 

recordkeeping requirement, but was not previously required to be reported. 

• A data element that was previously required to be calculated, but not reported, under Part 

98 must now be reported. 

• Deleting reporting requirements in many subparts 

• Renumbering of data reporting elements in most subparts. 

See Appendix 1 for an elaboration on the types of changes we are making and examples from the 

rule. 
Appendix 1: Categories of Amendments 

1. Clarification of existing data reporting requirements: There is currently a data 

reporting requirement in Part 98. However, based on perceived confusion among reporters, 

EPA is providing additional clarity on what was intended. There is no change in burden 

from these changes. 

Examples of Changes 

2009 Final Rule Requirement Change in Data Reporting Elements in Final 

Rulemaking 

Subpart G: 98.76(b)(6) requires reporters to 

report the sampling results of carbon content of 

petroleum coke as determined for QA/QC of 

supplier data. 

The data reporting element is amended to 

clarify that the reporting element applies to 

feedstock, this may be petroleum coke, but 

there are also other potential feedstocks. 

Subpart C: 98.36(d)(1) requires that for 

stationary combustion units that either are 

subject to the Acid Rain Program or not in the 

Acid Rain Program but monitor and report CO2 

mass emissions year-round according to 40 

CFR part 75, reporters report certain unit level 

information. 

The data reporting element is amended to 

clarify that the reporting element applies to 

units subject to subpart D, which is a more 

simplified way of stating who the provision 

covers. 

2. Rule provides additional flexibility for reporters based on questions raised during 

implementation. With the additional flexibility comes additional data reporting 

requirements, including identifying which approach the reporter is taking and any new data 

reporting elements associated with the new approach. Because the new approach is an 

option there is no increase in burden associated with implementing the option because 

reporters are not required to do so. 

Examples of Changes 

2009 Final Rule Requirement Change in Data Reporting Elements in Final 

Rulemaking 

Subpart C: 98.36(e)(2)- previous rule required 

facilities to use default HHVs found in Table 

C-1. We are providing additional flexibility to 

use site-specific HHVs. 

- New data reporting requirements to clarify 

that when you use a site-specific HHV, you 

must also report that HHV value. 

Subpart X:98.243(c) (5)(i) – add the option to 

use standard conditions for the molar volume 

conversion of either: 849.5 scf per kg-mole at 

- New data reporting element: report standard 

temperature at which gaseous feedstock and 

products volumes used were determined. 
68 °F and 14.7 PSIA or 836.6 scf/kg-mole at 

60 °F and 14.7 PSIA). 

Subpart X: 98.246(a)- allow use of alternative 

methods than those listed under limited 

circumstances. The burden analysis estimated 

that they had to follow a method and indicate 

which method they used. 

- New data reporting element to report/provide 

the: name or title of analystical method, copy 

of the method and explanation of why 

alternative is needed. 

Subpart Y : 98.253(b)(1)(ii)(A) – add the 

option to calculate CO2 emissions from flares 

using a different equation. 

- New data reporting elements: the inputs to 

the new equation (e.g., the number of carbon 

containing compounds other than CO2 in the 

flare gas stream) 

Subpart PP:40 C.F.R. § 98.423(b)- add an 

option where CO2 is supplied in containers, 

that the reporter can use weigh bills, scales or 

load cells as an alternative to the flow meters. 

- Clarify that reporter can still use flow meters 

to measure the CO2 supplied in containers, or 

alternatively, may use weigh bills, scales or 

load cells. 

3. Asking them to report basic facility ID information that they already know. These are 

new reporting requirements, but not new data collection efforts. This is common 

information, no assumed burden for data collection. The revisions would now just require 

them to report. 

Examples of Changes 

2009 Final Rule Requirement Change in Data Reporting Elements in Final 

Rulemaking 

Subpart A: Ask for basic information on 

facility, organization or entity reporting. 

- add general reporting requirements on 

1. Organizational name (company 

affiliation/employer) for the designated 

representative 

2. Organizational name (company 

affiliation/employer) for the alternative 

designated representative 

Subpart C: Ask for unit ID information based 

on information already available in other 

programs. 

1. Add Acid Rain Program Indicator 

Subpart X: Ask for basic facility information Type of Petrochemical Produced 

Subpart Y: Asking for information on the type 

of sulfur recovery plant (e.g., non-Claus sulfur 

recovery) 

Description of the type of sulfur recovery 

plant. 

Subpart Y: Asking which of two options were 

chosen

1. Asking whether daily or weekly 

measurement periods were used 
2. Asking which method was used to calculate 

emissions 

4. Require reporters to report a new data element for which there was a general 

recordkeeping requirement, but not listed in the respective subparts. These are new 

reporting requirements, but not new data collection efforts. The burden associated with 

collecting the data was accounted for in the ICR. The facilities would also have been 

required to retain the data as a record under the requirements of the specific subpart, or 

under the general recordkeeping requirements under 98.3(g). The revisions would now just 

require them to report. 

Examples of Changes 

2009 Final Rule Requirement Change in Data Reporting Elements in Final 

Rulemaking 

Subpart C: Requirement to add “methodology 

start date and end date”. Rule is clear under 

98.3(e) you needed to provide a written 

explanation of why a change in methodology 

was required. We felt it necessary, for the 

purposes of verification, to make clear that this 

description of why, should include when the 

change actually takes place. 

- Add “methodology start date” and 

“methodology end date” 

Subpart X: Identify petrochemical unit ID98.3(g) (1) would have required the facility to 

report “a list of all units, operations, processes, 

and activities for which GHG emissions were 

calculated” 

- Add “Unit ID” 

5. Part 98 requires them to calculate something, but it was not required to be reported. 

These are new reporting requirements, but not new data collection efforts. The burden 

associated with collecting the data was accounted for in the ICR. The facilities would also 

have been required to retain the data as a record under the requirements of the specific 

subpart, or under the general recordkeeping requirements under 98.3(g). The revisions 

would now just require them to report. 

Examples of Changes 

2009 Final Rule Requirement Change in Data Reporting 

Elements in Final Rulemaking 

Subpart C: had to calculate the total heat input, by fuel, 

when implementing equation C-10 in the final rule. The 

heat input was not required to be reported. Although 

note that data would have been required to be retained 

under 98.3(g)(2). Facilities are now required to report 

- 98.36(d)(1)- add data reporting 

requirement for “The total heat input 

from each fuel listed in Table C-2 

that was combusted during the year, 

expressed in MMBtu.” 
heat input. 

Subpart Y: Had to report whether you use a measured 

value, a unit-specific emission factor or a default, and 

you had to report several pieces of information about the 

unit-specific emission factor, if applicable. We 

inadvertently left out the requirement to report the unitspecific emission factor itself. We are now not requiring 

facilites to change the calculation methods, but now 

requiring them to report the data element. Note that they 

would have had to retain this emission factor as a 

recordkeeping requirement per 98.3(2). 

- 98.256- add data reporting elements 

for unit specific emission factors for 

CH4 and N2O. 

6. Other 

Requirement Change in Data Reporting Elements 

Subpart G: Industry felt it was important to 

add a reporting element on the quantity of CO2

supplied for onsite urea production, and the 

method use to quantify that CO2. This 

information is readily available from onsite 

process information needed for urea 

production, no data collection methods are 

required. 

CO2 from the steam reforming of a 

hydrocarbon or the gasification of solid and 

liquid raw material at the ammonia 

manufacturing process unit used to produce 

urea and the method used to determine the 

CO2 consumed in urea production. 

Subpart OO: Have to submit a one time 

report that describes the concentration of each 

fluorinated GHG constituent in each 

fluorinated GHG product. 

Subpart C: Separate reporting of biogenic 

CO2 emissions was optional for Part 75 units

Reporting of biogenic CO2 emissions is 

optional only for the first year; emissions 

reporting in subsequent years is mandatory for 

all Part 75 units. 

7. Delete selected reporting requirements in most subparts- (Stationary Combustion, 

Electricity Generation, Ammonia Production, Nitric Acid Production, Petrochemical 

Production, Petroleum Refining, Suppliers of Industrial Gases)

8. Renumbering in most subparts of data reporting elements- resulting from the 

additions/deletions described above.